2.
Report to Reserve Bank
The
link office of the designated branch of an authorised
dealer shall furnish to the Chief General Manager,
Reserve Bank of India ECD, Central Office, Mumbai
a report on daily basis on PIS transactions undertaken
by it, such report to be furnished on line or
floppy or in hard copy in a format supplied by
RBI.
3.
Remittance/credit of sale/maturity proceeds
of shares and/or CD
The
net sale/maturity proceeds (after payment of taxes)
of shares/CD purchased by NRI under the scheme
may be allowed by the designated branch of an
authorised dealer :-
(a) to
be credited to NRO account of the NRI investor
where the payment of purchase of shares and /
or convertible debentures sold was made out of
funds held in NRO account or where the shares
and or debentures were purchased on Non repatriation
cases or
(b) at
the NRI investor’s option to be remitted abroad
or credited to his / its NRE/FCNR/NRO account
of the NRI where such shares and/or debentures
were purchased on repatriation basis.
N.B
FCNR–
Foreign Currency Non-resident Account
NRE
– Non-resident External Account
NRO
- Non-resident Ordinary Account
NRNR
– Non-resident Non-Repatriable Account
NRSR
– Non-resident (Special) Rupee Account
Schedule
4 – Purchase / sale of shares and convertible
Debentures by NRIs on non-repatriable basis
Prohibition
on purchase of shares/convertible debentures of
certain companies.
Explanation
– For the purpose of this paragraph,
real estate business shall not include development
of township, construction of residential/commercial
premises, roads, bridges, etc.
Permission
to purchase and/or sell shares/convertible debentures
of an Indian company
-
Subject
to paragraph 1, a Non-resident Indian may
without any limit, purchase on non repatriation
basis, shares or convertible debentures of
an Indian company issued whether by public
issue or private placement or right issue.
Provided
that the person to whom the shares are being transferred,
has obtained prior permission of Central govt.
to acquire the shares if he has previous venture
or tie up in India through investment in shares
or debentures or a technical collaboration or
a trade mark agreement or investment by whatever
name called in the same field or allied field
in which the Indian company whose shares are being
transferred is engaged.
However the restriction shall not apply
to the transfer of shares to international financial
institutions such as Asian Development bank (ADB),
International Finance Corporation (IFC), Common
Wealth Development Corporation (CDC), Dutsche
Entinickbung Gesclscidiaft (DEG) and transfer
of shares of the Indian company engaged in Information
Technology Sector.
Method
of payment for purchase of shares/convertible
debentures
-
The
amount of consideration for purchase of shares
or convertible debentures of an Indian company
on non-repatriation basis, shall be paid by
way of inward remittance through normal banking
channels from abroad or out of funds held
in NRE/FCNR/NRO/NRSR/NRNR account maintained
with an authorized dealer or as the case may
be with an authorised bank in India:
Provided
that in the case of an NRI/OCB resident in Nepal
and Bhutan, the amount of consideration for purchase
of shares or convertible debentures of an Indian
company on non-repatriation basis, shall be paid
only by way of inward remittance in foreign exchange
through normal banking channels.
Sale/Maturity
proceeds of shares or convertible debentures
The
amount invested in shares or convertible debentures
under this Scheme and the capital appreciation
thereon shall not be allowed to be repatriated
abroad.
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